China’s Growing Unemployment Crisis

China’s serious unemployment problem has become worse due to the massive withdrawal of foreign capital.

Postgraduate applicants sitting on ground have meals outside a assembly hall on July 29, 2015 in Jinan, Shandong Province of China. VCG/VCG via Getty Images

The losses caused by the Sino-U.S. trade war to China are the divestment of foreign investors and the relocation of the global industrial chain. Along with the resetting the industrial chain are capital outflows and unemployment for several developing countries, including China.

The United States has become a safe haven for global investors due to the reform of the tax system and the loosening of supervision. In August, there were 201,000 new jobs in the United States, and the unemployment rate was down to 3.9 percent. However, China’s serious unemployment problem has become worse due to the massive withdrawal of foreign capital.

Unemployment Statistics With Chinese Characteristics

The Chinese regime has been expanding its censorship. In recent months, even negative news concerning the trade war, unemployment, loss of foreign exchange reserves, stock market and the real estate market have become sensitive topics subject to censorship. Despite this, there are still various methods available for measuring the severity of China’s unemployment.